THE fate of the Holyrood Bird, a national treasure with an extraordinary history, is poised to be finally sealed.

The papal gift to Scotland, plundered more than four centuries ago by English troops and then seized back in the 1980s by Scottish nationalists, soon could be on public show north of the border.

A permanent loan agreement is being negotiated between the National Museums of Scotland and a parish church in England, the legal owner of the Dunkeld Lectern, as the magnificent Bible stand is properly known.

The positive development comes amid continuing problems for the new Scottish Parliament building.

Officials yesterday dismissed as ''risible'' claims that damage and repairs following flooding last week could add millions to the (pounds) 431m cost of the Holyrood complex. It was also unclear yesterday whether Tony Blair would attend its official opening in October.

A public consultation on the Dunkeld Lectern, through newspaper notices, is expected soon and if no objections are lodged it is believed that Church of England authorities would not stand in the way of the long-term loan agreement.

That would allow the phoenix-like brass reading desk to undergo further conservation work at the NMS in Edinburgh before going on display there.

The Herald revealed five years ago that the ''bird'' with its wings outstretched had mysteriously turned up in an Edinburgh arts centre after being missing for 15 years.

The lectern was made in Italy in 1498 and gifted to Scotland by Pope Alexander VI. It was accepted by the Bishop of Dunkeld and taken to Holyrood Abbey, where it remained until 1544, when an English army attacked Edinburgh. It was taken south to St Stephen's in St Albans, Hertfordshire.

A band of ''Scottish patriots'' reclaimed it in a Stone of Destiny-style raid on the church in 1984. It was believed they then hid it in a Highland grave, indicating that it would not re-emerge until a Scottish parliament had been established.

A spokeswoman for the parliament yesterday,confirmed that torrential rain had caused a drainage problem outside the perimeter of the complex, leading to a leak that flooded a basement office.

''There was some damage to fittings, such as the carpet, but this will not come anywhere near the thousands of pounds that has been talked of and the suggestion this could involve millions of pounds is risible,'' she said. ''There was no question of widespread flooding.''

It is unclear whether the prime minister will attend the building's official opening. A No 10 spokesman said that he was unable to confirm or deny a report that he would not be coming to Scotland that weekend.

Mr Blair missed the parliament's opening in 1999 because he was heavily involved in finalising the Good Friday Agreement. While that was understandable, if he stays away this time it will be seen by some as a snub.